State Trading Organization (STO) Managing Director Shimad Ibrahim has revealed that FENAKA owed MVR 1.9 billion to the company when the new management took over.
State Trading Organization (STO) Managing Director Shimad Ibrahim has revealed that FENAKA owed MVR 1.9 billion to the company when the new management took over.
In an exclusive interview with "Mihaaru," Shimad said that when the new management took over, they were faced with almost MVR 2 billion in unpaid fuel bills. He stated that STO had been supplying the fuel to FENAKA at a special rate, and that there was no reason for them to not pay the money.
"The biggest challenge is that STO has not received any payments from FENAKA since 2021. It's not that they are not paying regularly, they are not paying at all. They probably do not believe that electricity is produced by burning fuels. We have mostly resorted to the government to get money," he said.
Shimad highlighted the difficulties being faced due to FENAKA's failed payments, and added that the new management at FENAKA had been making payments for new fuel purchases even if they are unable to clear the debts from before.
"Now, at least they make payments for the fuel they take," said Shimad.
STO's Managing Director also revealed that aside from this issue, the company had no other financial difficulties.
The issue of non-payment by FENAKA was first brought to attention by STO executives in the previous government. According to information released by STO regarding the issue in April last year, FENAKA had accumulated MVR 1.8 billion in unpaid fuel bills.
STO is one of the largest revenue-generating State-owned enterprises in the country. Last year, the company recorded a revenue of MVR 16 billion with MVR 820 million in profits.
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